Going into its fourth year, one of the things the Quipu team and its CEO Roger Dobaño are proud of is their low churn rate.

Quipu is an online billing software that solves your daily administrative tasks. And as with any SaaS product, churn is a number they keep close track on, says Dobaño:

I’m in touch with the churn numbers daily, but we measure it monthly, like most startups.

A low churn percentage is not only validating that they’ve built a product people like, but keeping the rate down over years has also taught them a lot about how their customers think and act, according to the CEO:

For a B2B SaaS company, it’s often quite expensive to acquire new users, so we’re very proud that we’ve been able to hold churn under one percent from the start.

Support

It’s not rocket science, with more customers come more responsibilities, and that means a higher demand for service.

As you’re scaling your customer base, one of the most important things you need to do is to make sure your customer service team scales together with your customers. The easiest way to keep churn down, is to have someone that really understands the product and cares about the customers.

He continues:

Even though many of your customers never need any help with the product, it’s part of the trust relationship you build, as the customers know that there are humans to talk to at the other end of the software.

The first 12 months Quipu didn’t hire customer care people says the CEO:

For the first year of our business, I did all the customer support myself. Not only because the team was small, but so that I always knew what our customers thought about our product.

He says he’s still in touch with the customer service team, as it’s one of the best ways to know how to develop and improve the product.

He explains that the way customer service agents should attend struggling users could be an article in itself. The baseline is to listen a lot, be understanding, patient and get to the core of what kind of problem the user is facing. There’s usually always a way to fix it.

No automated unsubscribe button

It’s not about making it hard for customers to unsubscribe, according to Roger, but it’s about understanding why they want to leave.

If you want to unsubscribe, we’ll get notified when you push the button, and we’ll get in touch. Their reason for unsubscribing is often connected to a task we can help them achieve very easily, preventing them from leaving and making them happy again.

And if the customer has decided to leave anyway, you’ll at least have the data on why, if you actually talk to them. It’s also for security reasons, as people’s financial data has to be treated carefully.

When you’ve grown a significant amount of customers or users you should also consider measuring CSAT and NPS metrics.

Apart from great service, upselling is another way to prevent customers from choosing another product. The more ways people use your product, the lesser is the chance of the person leaving you.

With a very low churn rate, you’re actually able to reach negative churn, if you’re able to upsell enough.

Quipu is counting 13 heads these days, but growing steadily every quarter.

Track patterns

When you have a payback period of one year, which is normal in SaaS companies, you need to know that people are happy especially in the beginning to keep the retention rate high.

Apart from speaking with the customers, tracking their movements and tasks inside the product is a very good way of seeing where it goes right and wrong.

For example, in Quipu one of our services is managing invoices. After looking at the user movements, we now know that the retention rate is much higher if the user creates three or more invoices. With this info we’ve been able to retain more customers over the years.

Dobaño adds that it’s also important to use movement trackers to contact users who are struggling, even before they complain or think about leaving.

Don’t go crazy with features

It’s both upsides and downsides to talking a lot with your customers (obviously more positive sides though). One of the challenges is that people have a lot of thoughts on what kind of features you should develop next.

If you’re working B2B, you’re in touch with professionals, and they’re aware of what type of features would make their day easier.

This results in new features that both keep the retention rate high and make it easier to acquire new users.

But it is easy to take water over your head and create ten good features to please everyone, instead of making 3 perfect features. It’s a difficult balance, according to Roger:

We try to focus 60 percent of our capacity on building our existing product better, and 40 percent of our time making features for acquiring new customers.

The holy two percent

When you’re working with high growth products, it’s often essential to be raising funding from investors.

A motivation in keeping your churn low is that most investors will not bet on a SaaS startup if it has a churn rate of 2 percent or more.

So even though you’re acquiring a lot of customers early on, having churn in mind from the first minute, can be more valuable than you think.

Some last tips on the list to prevent churn you should consider is:

  • Make meaningful partnerships with complimentary services.
  • Don’t let credit cards expire.
  • Let the whole team know your churn rate and be aware of changes
Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

E.

Essential Podcasts for Entrepreneurs & Tech Lovers

Podcasts are a great way to discover new subjects and new people. Whether you are a tech lover or an entrepreneur, bellow you will discover podcasts for entrepreneurs you should – without a doubt – listen to. 

Itnig Podcast with César Migueláñez, Bernat Farrero and Carlos Pierre
Itnig Podcast with César Migueláñez, Bernat Farrero and Carlos Pierre

« Masters of Scale » 

with Reid Hoffman

The host: Reid Hoffman decides to turn to the corporate world instead of pursuing a university carrier. He worked for Apple, Fujitsu for then starting his own business: SocialNet and left it in 2000 to join Confinity. Confinity gives life to Paypal after fusionning. Finally, in 2003, Hoffman co-founds LinkedIn. He is Master of Scale’s host. 

About: The podcast welcomes some of the greatest entrepreneurs. You will discover throughout the talk how they managed to take their companies from 0 to a lot of zeros. You can listen to Masters of Scale’s special guests like Mark Zuckerberg (Facebook), Selina Tobaccowalla (Evite), Brian Chesky (Airbnb) or Nancy Lublin (Crisis Text Line). Must-hear: one of the top tech podcasts for entrepreneurs.

Listen to the podcast: On their website, Apple Podcasts, Spotify and Youtube

The Team: Reid Hoffman, June Cohen, Deron Triff and Jai Punjabi

« Rocket » 

with Christina Warren, Simone de Rochefort and Brianna Wu

The hosts: Christina Warren started as a Freelance Writer. Then, she worked at Mashable as a Senior Tech Analyst and Tech Correspondent and ended the journey at Microsoft as a Senior Cloud Developer Advocate. About Simone de Rochefort, she is  Senior Video Producer and co-host of The Polygon Show. Brianna Wu founded her first startup at the age of 19, Giant Spacekat. She was Head of Development at the time. She is now running for US Congress. 

About: In this podcast, you will discover three passionate women and their “geek conversation” as they like to call it.  No guest speakers, but you will be able to listen to a panel of tech subjects from Apple to Comics, you will not be disappointed. 

Listen to the podcast: On their website, Apple Podcasts, Overcast, Pocket Casts, Spotify and Castro

« This week in Startups »

with Jason Calacanis

The host: Jason Calacanis starts as an internet industry journalist in New-York. In 2003, he co-founded Weblogs, Inc and then a few years later he joined Sequoia Capital, launched the web directory Mahalo. He also founded ThisWeekIn.com. Furthermore, he created This Week in Startups podcast and a startup named Inside.com. Finally, he was part of the creation of the Sydney Launch Festival. 

About: Either you are looking to start your own company, or you are a successful entrepreneur, or you just love technology, this podcast will give you a peek to the entrepreneurship world. You will hear stories of all kinds! On his website, you will also find his events and some research on transportation, healthcare and more. This is one is part of the tech podcasts for entrepreneurs not to be missed.

Listen to the podcast: Apple Podcasts, Youtube, SoundCloud and RSS Feed

You can also subscribe to their newsletter in order to receive episodes directly. 

The Team: Jason Calacanis, Jacqui Deegan, and Tony Agapiou

« Recode / Decode » 

with Kara Swisher

The host: Kara Swisher is an American journalist specialized in the technology industry. She first started to work for an alternative newspaper in Washington for then working for the Washington Post. She wrote articles for the Wall Street Journal and New York Times and wrote her own books. Finally, in 2014, she created Recode, a website dedicated to the latest technology news. In 2015, she initiates Recode Decode. 

About: The weekly podcast welcomes tech experts and great entrepreneurs. They review how they got there, what’s on their mind about the current industry and what they would improve or create. Her recent guests were Elon Musk (Tesla CEO), former Secretary of State Hillary Clinton and Mark Zuckerberg. 

Listen to the podcast: Apple Podcasts, Google Podcasts, Spotify, Stitcher, and TuneIn

« K Fund PodKast »

with Jaime Novoa

The host: Jaime Novoa’s background is quite diverse. He is a writer and an investor, but he also worked in data analysis and social media analysis. In 2014, he founded Novobrief, a newsletter for startups. Then, in 2016, he becomes an investor at K Fund and he founds, in 2019, Dealflow, a weekly tech newsletter. 

About: The podcast discusses startups, entrepreneurs and Venture Capital. You will discover enterprises and their story. From data science, unicorns or digital platforms, you sure will find more than one interesting podcast. 

Listen to the podcast: On their website and Soundcloud

« Clockwise »

with Dan Moren and Mikah Sargent

The hosts: Dan Moren is an active author and writer as well as podcaster. He was a Senior Editor at Macworld. Today, he hosts two podcast shows: Clockwise and The Rebound. As for Mikah Sargent, he started as a Website Designer and Developer for then switching as a Senior Editor at Newsy. He now hosts few podcasts such as Clockwise on Replay FM or on TWiT.tv. 

About: The weekly podcast discusses technology and welcomes each time 2 special guests. For 30 minutes, they address 4 topics where all four speakers get to elaborate on the matter, highlight the issues and expose their thoughts. 

Listen to the podcast: On their website, Apple Podcasts, Overcast, Pocket Casts, Spotify and Castro

« Itnig Podcast»

with Bernat Farrero

The host: Bernat Farrero starts his career as a Developer. In 2009, he founded Itnig, a startup ecosystem that organizes entrepreneurship events. They also have a coworking for startups, a podcast and a fund for early-stage projects. Furthermore, he is a Founder of Factorial, Quipu and Camaloon. He is also a Board Member of Playfullbet, GymForLess and Parkimeter. Finally, he hosts Itnig’s weekly Podcast. 

About: The podcast welcomes every week a new guest. If you wish to learn from successful entrepreneurs, you are on the right platform. The discussions turn around Technology and its industry. You will come across guests like Carlos Pierre (Badi), Vincent Rosso (BlaBlaCar) or Oscar Pierre (Glovo).

Listen to the podcast: Youtube, Spotify, Apple Podcasts, Ivoox, and Google Podcasts

You can subscribe to their newsletter if you want to receive the podcast’s link every Monday. 

Whether you are at an early stage of your project, an investor or you are just curious, these podcasts for entrepreneurs give you the opportunity to be updated on tech and business news. Also, you get to learn from successful international entrepreneurs, which can definitely be very useful for your business.